“Protecting your capital is crucial”

Many novice traders think that trading is a quick and easy way to big money. Unfortunately, this is one of the biggest misconceptions that eventually leads to many of them losing money. The sooner traders realize that quick money does not exist, the better. And our FTMO Traders Garrett, Britania, Amr and Peder Røsnes know this too.

Trader Garrett: “ Stop trying to flip an account overnight”

How did loss limits affect your trading style?

The way a Maximum Loss limit affects my trading is it changes the way I manage my risk, as well as my lot size. I personally like to take larger positions when I have multiple confluences on a trade, but this rule forces you to size down and really manage the live trade you are in. There are pros and cons to this rule. It forces you to be diligent with your entries and exits, as well as managing risk; but makes it tough to size into positions. I do like how FTMO incorporates your daily profit into your daily drawdown, but I believe your daily drawdown should change depending how much profit you have in the account on a day-to-day basis. This allows you to use your profits to scale into positions. Regardless, I had no trouble trading.

Has your psychology ever affected your trading plan?

Psychology is one of the biggest factors that will determine your success in trading. That is something as traders we must work on every day. It is something I continue to work on and develop every day and it will always be more important to me than technical analysis. Getting your TA down is one thing, but if you cannot implement the psychology behind trading and rules to follow, you will never be profitable.

What was the most difficult during your FTMO Challenge or Verification and how did you overcome it?

The biggest issue I had to overcome was my position size and risk management. Depending on the account you are trading and the forex pair, you must manage your risk accordingly. I had major winners, but some major losses, and I learned that the smaller positions I took, the easier it was for me to cut small losses and hold my winners for a longer duration. Big profits, smaller losses.

What do you think is the key for long term success in trading?

1. Always improving and practicing, like any skill. 2. Wait for your trade set ups, don't force a trade. 3. Managing Risk 4. Always stick to your plan and rules. Those 4 major items for me is what has changed my trading.

What do you think is the most important characteristic/attribute to become a profitable trader?

Executing your trades like a robot; emotionless.

One piece of advice for people starting the FTMO Challenge now.

Stop trying to flip an account overnight. Stick to what you know and let the trades come to your set ups. Stop taking massive lot sizes and take profits at the levels you have marked and stop getting greedy!

Trader Britania: “Trading is not a get-rich-quick scheme.”

What does your risk management plan look like?

Protecting your capital is crucial. Never risk more than a small percentage of your trading capital on a single trade. Setting stop-loss orders can help limit potential losses. I ensure that I stick to my plan risking only 1 % per trade.

What do you think is the key for long term success in trading?

Proper risk management and patience. Go slow and stick to the plan. Stick to the proven edge that has allowed you to remain profitable and keep your mindset in a probabilistic state.

How did you manage your emotions when you were in a losing trade?

Emotions can drive impulsive decisions that lead to losses. Develop the ability to remain calm and rational. I keep calm and try to figure out why I lost and come back the next day with a fresh mindset and continue to stick to my plan and trust the process.

Do you have a trading plan in place, and do you follow it strictly?

Yes, and yes.

Describe your best trade.

Patiently waited on all time frames to shift in one direction, 4 hour closures, the correct session, and all other confirmations before entering and it was worth it, the trade went straight to TP within at least 2 days.

What is the number one piece of advice you would give to a new trader?

Be patient and realistic. Trading is not a get-rich-quick scheme. It takes time to develop skills and consistently profitable strategies. Set realistic expectations and be patient with your progress.

Trader Amr: “Trading taught me how to accept failures.”

What inspires you to pursue trading?

I got countless reasons to say but I am going to stick to the most important ones, trading taught me how to accept failures. It proved how success can be achieved after harsh failures. Same as how life works. I dislike being controlled by employers just because they numb me with the minimum wage. Trading taught me a lot.

What do you think is the key for long term success in trading?

The key to long term success is to be happy with any profit you gain from trading. The market is moody, and it can change very quick. Try to secure your profits by not getting greedy and most definitely risk management! You must calculate how much the losses in the worst-case scenario are and ask yourself if you are able to take these losses mentally, if yes go ahead!

How did loss limits affect your trading style?

I got to admit this, I didn’t really have the Maximum Loss limit in my previous trading style but hey! It really helps you knowing your limits and helps you not to blow up your equity. ;)

What was the most difficult during your FTMO Challenge or Verification and how did you overcome it?

The most difficult was the time limit, especially the 1st phase, I had 30 days to get 10% with the Max Loss limits, it was quite challenging, and I overcame it by spotting many set ups in the market that helped me achieving the target on time.

How did you eliminate the factor of luck in your trading?

As a trader I don’t believe in luck, we make our own luck by studying the market, the news, and indicators for sure. If a trader relies on luck then the casino is your place! ????

What is the number one piece of advice you would give to a new trader?

Don’t give up and give it some time, it’s a skill that requires patience and multiple strategies to master it, just like chess! :) Never start with your real money, instead try demo account.

Trader Peder Røsnes: “Trading is a profession where your risk is high but with low time requirements.”

What do you think is the most important characteristic/attribute to become a profitable trader?

Having large goals and a sense of urgency. Many beginner traders do not feel an intense need to become great traders, and they, therefore, take a long time and postpone.

How has passing the FTMO Challenge and Verification changed your life?

It affirmed the skills I already had, giving me a renewed sense of accomplishment. It also shows others that I am a competent trader, by providing a stamp-of-approval.

Has your psychology ever affected your trading plan?

To be able to follow a trading plan, you need to know how the trading plan in question works and the principles behind it. If you doubt your own trading plan, you will let your natural psychological urges influence your trading decisions, and you will feel nervous. In this regard, I have let my psychology affect my trading performance.

How did you manage your emotions when you were in a losing trade?

Always have a correct stop loss in place, where you are not risking too much for your risk appetite. This limits the damage a losing trade can cause, and that calms your emotions when the market is moving against you. After the loss, you must review why you were wrong, and how you could have seen your mistake earlier.

What inspires you to pursue trading?

Being able to leverage your time. I personally believe all jobs are a mix of risk, time requirements, and income received. In standard employment, you have low risk, which in turn requires you to spend large amounts of time and your income will be low. Trading is a profession where your risk is high, but with low time requirements (you don’t have to work many hours if you are consistently profitable, have low costs of living, and trade high volumes) and the income potential is very large. With these principles it is impossible to have a profession with very low risk, low time requirements, and high-income potential, that is a fantasy. I would prefer the high-risk option of trading.

One piece of advice for people starting their FTMO Challenge now.

A Word of Caution: If you are not already consistently profitable, do not attempt an FTMO Challenge. Start trading your own account with a broker and build up your skills with the smallest trade size possible. Once you are profitable, attempt an FTMO Challenge. It will save you a lot of money. Also: Read the conditions of the Challenge carefully.